Lansdowne Partners has added a long-only fund to the portfolio of its top hedge-fund managers, Peter Davies and Stuart Roden.

The London-based hedge fund launched its Developed Markets Long-Only Fund on Monday, Financial News reports. The new fund will invest only in the largest and most-liquid stocks.

Davies and Roden have been running the strategy since January as a managed account, with US$350 million from an American institutional investor. The managers believe the new fund will profit over the next decade, which Davies and Roden say will see material flows over that period.

Developed Markets Long-Only is actually Davies' and Roden's second long-only offering, after the Developed Markets Strategic Investment Fund, which debuted five years ago. That fund, which currently manages US$580 million, has a US$1 billion capacity.

The new fund has an unlimited capacity, unlike Developed Markets Strategic Investment and their newly-renamed and restructured Developed Markets hedge fund. That fund has a US$7.6 billion capacity due to short-book constraints. That fund is up 8.75% on the year.

Developed Markets Long-Only will charge a 1% management fee and no performance fee.

From the current issue of

The ratio calendar combination spread couples two ratio calendar spreads, one using calls and the other using puts. The call strike prices are higher than the put strike prices. This strategy is complex and profit is limited, but if a high amount of time value is involved in the short positions, that profit can be substantial and risk is still limited.